Aug 24 (Reuters) - Shares of Canada’s Absolute Software Corp ABT.TO fell 10 percent on Tuesday, a day after the computer security systems provider posted a wider-than-expected quarterly loss and said it expects average selling price for its existing customers’ sales to fall.
Analyst Sera Kim of GMP Securities said management’s expectations for a sluggish PC refresh cycle goes against the commentary from Dell DELL.O.
“We believe Absolute’s newer sales team may not yet be fully productive, and perhaps longer term, enterprises’ priorities surrounding cloud computing could be another trend providing some uncertainties,” Kim said. The Vancouver-based company, which is a key member of Intel’s (INTC.O) anti-theft offering that lowers incidents of notebook thefts, on Monday posted a quarterly loss, hurt by higher sales and marketing expenses. [ID:nSGE67M0MC]
PI Financial cut its price target on the stock to C$6.75 from C$7, but said it expects renewals to be the key driving factor for sales contracts growth in fiscal 2011.
Macquarie Equity Research analyst Glenn Jamieson also said a growing sales pipeline should support better sales growth for the company.
Absolute Software shares, which have lost nearly 22 percent of their value in the last six months, were down 49 Canadian cents at C$4.29 Tuesday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)